Orient Bell Limited

Q3/9MFY15 Investor Update

March, 2015

ORIENT BELL LIMITED

www.orientbell.com

Global Ceramic Tiles Industry Facts

World Manufacturing Areas of Tiles in 2013

Global Ceramic Tile Industry production reached 11,913 million square metres in
2013.

Worldwide consumption at 11,574 million square metres in 2013 a remarkable

convergence between tile production and consumption

Asia

Of the total world consumption in 2013, roughly 77% is domestic sales and rest
23% is import-export

Central-South
America

10%

European Union

10%

China accounted for 39.4% followed by Brazil (7.2%) and India (6.5%)

70%

In 2013, top ten major manufacturing countries covered 83% of world production
Other Europe

5%

Geographical shift in tile production from the European base to the emerging
economies of Asia, North Africa and Middle East

Africa

3%

Asia (including Middle East) accounts for ~70% of worlds total ceramic tile
production

North America

3%

China accounts for 47.8% of the tile industrys global output of which ~90% is
consumed domestically, followed by Brazil, India, Iran, Spain, Indonesia, Italy ,
Turkey, Vietnam, and Mexico amongst the top 10 tile producing nations

Oceania

0%

0%

20% 40% 60% 80%

India is the 3rd largest producer and consumer with consumption nearly matching
production capacity.
Source: www.Infotile.com/publications

ORIENT BELL LIMITED

www.orientbell.com

Indian Ceramic Tiles Industry Facts

Indian Ceramic Tile Industry estimated to be over INR ~22,500 crores (FY14),
growing at a healthy rate of ~15% annually

At a production capacity of 750 (FY14) million square metres, India is the worlds
3rd largest manufacturer and consumer of ceramic tiles

More than 600 tile manufacturers in India

Industry structure majorly comprising of Organized Players (50%) and

Unorganized (50%), which are increasingly becoming out-sourcing partner of
top national players as industry graduating towards consumer & brand driven
play.

Product segments: As of FY 14, Ceramics accounted for 59% of volume followed

by Polished Vitrified Tiles (36%), and Glazed Vitrified Tiles (5%) available in wide
variety of designs, textures and surface effects

Industry Segmentation

Per Capita Consumption of Tiles

In value terms (FY14), Ceramic tiles accounted for INR 10,600 crores
followed by Polished Vitrified INR 9,600 crores , and Glazed Vitrified Tiles
INR 2,300 crores

India has a low per capita consumption of 0.54 sq. mt. as compared to 3.07 sq.
mt. in China and 4.00 sq. mt. in Brazil and thereby we expect continued
momentum in sector growth.
Replacement market in India growing rapidly

4.00
3.07

0.54

India

China

Brazil

Source: As of 31st Mar14; Ceramic World Review

Source: Ceramic World Review, Industry

ORIENT BELL LIMITED

www.orientbell.com

Key Macro Drivers for Ceramic Tiles in India

GDP Growth
According to recent Economic Survey, Indias GDP poised to grow 8.5% in FY16, projected to clock double-digit
level in the subsequent years
Impact of Budget Provisions Feb 2015

Enhanced focus on Infrastructure,

Development of smart cities, industry corridors,
Affordable housing,
Implementation of GST, will accelerate organized sector FY 16 onwards
Reduction of corporate tax rates to 25% over the next four years will benefit organized players in the industry
Swachh Bharat Abhiyan

Building of toilets under the Swachh Bharat Abhiyan launched by Indian Govt. is gaining momentum with
increased support from corporates, to boost demand of tiles in the coming years

Drop in Crude Prices

Recent decline in crude oil prices to result in lower fuel costs, benefit to be realized in 18-24 months on GAIL
supplied RLNG a major component of fuel in ceramic tiles and immediate impact of LPG wherever used
Reduction in Interest Rates

Interest rate reduction likely to have positive sectoral impact

Source: Union Budget 2015-16, Economic Survey of India, Economic Times

ORIENT BELL LIMITED

www.orientbell.com

Orient Bell Limited Today

Successfully Integrated Bell Ceramics, to become a leading pan India player with 2nd largest in-house
capacity of over 24.0 msm;

One of the few Indian companies with plants in North, West and South India

Capacity Utilization equated 92% and premium quality production over 88% across all plants

Fully digital capability in all plants with increasing share of digitally printed tiles

Focus on SKU optimization (target of 900 by April, 2015) and effective inventory management

Commenced outsourcing for select range in the last 18 months with 5.0 msm outsourced

OBL is a pan India player today with over 4,500 active dealers with strong position in North, East and
South, 120 Orient Bell Tile Boutiques (OBTBs) and 25 Depots

Orient Bell is now the company brand going forward and all products sold under Orient Bell brand

Dealer level rebranding underway transitioning from Orient and Bell to Orient Bell; completed rebranding
in over 500 active outlets in FY15

To complete rebranding pan India by end of FY16

Only company with 4 pending patents and has the full range of tiles in ceramic and vitrified

Significant institutional approvals and approved across a wide spectrum of government departments with
continued strength in the government and institutional segment.

ORIENT BELL LIMITED

www.orientbell.com

OBL is one of the fastest growing tile companies in India

Strong Growth during Dec FY11-Dec FY15
INR Crores

Gross Sales

EBITDA

TTM: Trailing twelve months

OBL has successfully acquired and integrated Bell Ceramic, the largest acquisition by any Indian
Tile company

The growth is a combination of Organic and Inorganic Growth

OBL is now a pan India player amongst a handful of such players in the country.

ORIENT BELL LIMITED

www.orientbell.com

Quarterly Overviews

Own
Manufacturing
Capacities

Operational
Performance

Financial
Performance

Q3 FY 15 - 5.4 msm
produced equating 91%
of capacity

In Q3 FY15 - Sales
volume increased by
12% y/y

Q3 FY 15 - Net Sales
increased by 24% and
PBT increased
by 222%

9M FY 15 16.5 msm
produced equating 92%
of capacity

9M FY 15 - Sales
volume increased by
11% y/y

ORIENT BELL LIMITED

9M FY 15 - Net Sales
increased by 21% y/y
and PBT increased 38%
during the same period

www.orientbell.com

Sales Performance
Sales Volume (in Mn Sq Mtrs)

ORIENT BELL LIMITED

Sales Value (INR Mn)

ASP Growth Movement

www.orientbell.com

Q3/9MFY15 Profit & Loss

INR Mn

Period

Q3FY15

Q3FY14

Growth y-o-y

9MFY15

9MFY14

Growth y-o-y

Sales (Gross)

1,845

1,489

23.90%

5,319

4,403

20.80%

Sales (Net)

1,699

1,367

24.30%

4,903

4,058

20.80%

Net Income from

Operations

1,701

1,367

24.20%

4,911

4,064

20.80%

127

119

7.10%

344

374

-8.00%

7.50%

8.70%

(120 bps)

7.02%

9.22%

(220 bps)

13

339.80%

22

16

40.10%

0.74%

0.21%

53 bps

0.45%

0.39%

6 bps

EBITDA*
Margin on Net Sales
PAT
Margin

*EBITDA in current year was negatively impacted due to increase in fuel costs and optimization of inventory

ORIENT BELL LIMITED

www.orientbell.com

Strategy for Growth and Margin improvements

Way
Forward
2011-14
Before
2010

Focus on North and

East markets
Product Development
Capacity Expansion and
increasing presence
Strong in institutional
with growing retail

Acquisition and
Consolidating Bell Ceramics
Pan India Presence
Harmonizing internal
systems and process
improvements to improve
efficiency
Strengthening Management
and Distribution Network
Launch Digital technology

Growth+
Build Capacities through
Outsourcing/JV route for
Vitrified
Enhancing dedicated retail
space with continued
momentum of adding OTBTBs
with a target of 200 by FY 16
Deeper penetration in the
Interior Designer and Architect
market
Margins+
Refining existing lines to
improve mix of floor and digital
tiles
Enhanced focus on digital and
vitrified floor tiles and thereby
profitability
Orient presence and product
awareness to be enhanced with
both BTL and ATL advertising

Focus Areas

ORIENT BELL LIMITED

www.orientbell.com

Disclaimer
The information contained herein has been prepared to assist prospective investors in making their own evaluation of the Company and
does not purport to be all-inclusive or to contain all of the information a prospective or existing investor may desire.
This Information may include certain statements and estimates provided by the Company with respect to the projected future
performance of the Company. Such statements, estimates and projections reflect various assumptions by management concerning
possible anticipated results, which assumptions may or may not be correct.
Prospective investors will be expected to have conducted their own due diligence investigation regarding these and all other matters
pertinent to investment in the Company.
This presentation may contain statements that are forward looking statements. The companys actual future results may differ
materially from those suggested by such statements, depending on various factors for which the company and its management does not
take any responsibility.

For further information, please contact:

Investor Relations:
Orient Bell Limited
CIN Number - L14101UP1977PLC021546

Mr. Jaywant Puri

jaywant.puri@orientbell.com
www.orientbell.com

ORIENT BELL LIMITED

www.orientbell.com